Plastic Omnium issued a €300 million 7-year Schuldscheindarlehen

21-12-2018 Finance

Compagnie Plastic Omnium today completed a Schuldscheindarlehen (private placement under German law) for 300 million euros.
This is a 7-year private placement with a fixed coupon of 1.632%, without covenants or ratings.

The net proceeds of the issue will be used to meet the Group’s general financing needs as part of its profitable and independent growth strategy. It will strengthen the Group’s debt structure by extending the average maturity of its debt and diversifying its sources of financing.

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Laurent Burelle succeeds to Jean Burelle as Chairman and Chief Executive Officer of Burelle SA

19-12-2018 Finance

In its meeting today, the Board of Directors of Burelle SA, the holding company leading and controlling the Burelle Group, accepted Jean Burelle’s resignation from his position as Chairman and Chief Executive Officer under the provisions contained in the bylaws relating to the age limit. The Board unanimously decided to appoint Laurent Burelle as Chairman and Chief Executive Officer of Burelle SA, effective January 1st, 2019. Laurent Burelle retains his positions as Chairman and Chief Executive Officer of Compagnie Plastic Omnium, Burelle SA’s main subsidiary.

The Board of Directors thanked Jean Burelle for his decisive contribution to the Group’s development over more than 50 years, and in particular to the internationalization of Compagnie Plastic Omnium, a capital movement that enabled a French company to become the world leader in its activities, while retaining control by the founding family.

In passing on the chairmanship of Burelle SA to Laurent Burelle, Jean Burelle continues the family tradition, having himself succeeding to Pierre Burelle, the Group’s founder, as Chairman and CEO of Compagnie Plastic Omnium in 1987, and then as Chairman and CEO of Burelle SA in 2001. From 1987 to 2001, Compagnie Plastic Omnium’s expansion was important, increasing from €172 million in revenue and 2,000 employees to €1.6 billion in revenue and 9,000 employees in 2001.

Underlining the pertinence of Jean Burelle’s strategic vision, and in light of these circumstances, the Board of Directors has decided, with the favorable opinion of the Compensation Committee, to award exceptional compensation to Jean Burelle in respect of the positions he held, based on his compensation for the year 2018. The amount of this exceptional compensation will be set by the Board of Directors in March 2019, and will then be submitted for a vote to the Shareholders’ Meeting.

The Board of Directors also applauded the decision to continue the family control by welcoming Laurent Burelle as Chairman and Chief Executive Officer of Burelle SA. Laurent Burelle, who joined the Plastic Omnium Group in 1975, became the Group’s Chief Executive Officer in 1987, and then Chairman and Chief Executive Officer in 2001.

Under his chairmanship, Compagnie Plastic Omnium continued its development to reach revenue of nearly €9 billion in 2018, pursuing internationalization that now stretches globally across all continents: Europe, North and South America, Asia, and China in particular. Today, the Group is the 26th largest automotive supplier in the world, present in 26 countries, with 122 plants and 24 R&D centers, developing and delivering complex systems for 83 automotive brands.

Governance of Burelle SA’s two other wholly-owned subsidiaries remains unchanged:
– Jean Burelle retains his position as Chairman of the private equity firm Burelle Participations;
– Laurent Burelle continues as Chairman of Sofiparc, a real estate company that manages the Group’s non-industrial real estate assets.

The development of Burelle SA and its subsidiaries, Compagnie Plastic Omnium, Burelle Participations and Sofiparc, accordingly remains underpinned by the same majority family commitment and continues with renewed confidence in the future, driven by the ability of the Group’s 31,000 employees to meet tomorrow’s challenges while remaining faithful to the values on which its success has been founded.

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From left to right: Jean Burelle and Laurent Burelle

Sale of the Environment business to the consortium Latour Capital/Bpifrance

18-12-2018 Finance

Compagnie Plastic Omnium confirms the sale of its subsidiary Plastic Omnium Environment BV to the consortium made up of Latour Capital and Bpifrance (Banque Publique d’Investissement). The deal is made for an enterprise value of €220 million.

The Environment business – which is Compagnie Plastic Omnium’s founding business – is the European leader in the containerization of waste. Standalone, profitable and cash-generating, with 6 plants in France, Germany and Spain, an R&D center, a customer service center recently inaugurated at Saint Priest (France), and with the large network of agencies and service desks serving 8,000 customers, this business generates an annual revenue of €340 million, thanks to a broad range of products and services dedicated to waste management (wheeled bins for household waste, collection banks, composters, underground and semi-underground containers; maintenance, washing, surveys and implementation, data management, incentive-based invoicing systems, etc.). Plastic Omnium Environment employs 1,800 people operating across 12 countries.

This project reflects Plastic Omnium’s decision to concentrate all of its human and financial resources on its automotive business. As the world leader in intelligent exterior systems, clean energy systems and modules for the automotive industry, the Group is implementing a strategy of innovation and profitable growth through sustainable mobility.

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Continuing a profitable growth strategy:

13-12-2018 Finance

Free cash-flow, cost reduction and industrial excellence to accelerate innovation and enhance technological content.

To mark its Investor Day, held today at its global R&D center for clean energy systems, α-Alphatech in Compiègne, Plastic Omnium is unveiling its strategy for profitable and independent growth to take account of the volatility of automotive markets in a context of technological change acceleration.

A global and diversified automotive pure player

An independent family Group, Plastic Omnium is a global player present in 26 countries, with 122 plants and serving 83 automotive brands.
Following the takeover of HBPO, the world leader in front-end modules, on July 1st, 2018, and the disposal of the Environment Division due to take place on December 17th, 2018, Plastic Omnium confirms its position as an automotive pure player organized around two operating segments with different business models:
– Plastic Omnium Industries, dedicated to production activities for intelligent exterior systems and clean energy systems, with significant investment and long cycles;
– Plastic Omnium Modules: dedicated to design and assembly activities for complex modules with low levels of capital employed.

2018: a complex market environment

2018 was marked by a steady increase in macro-political and macro-economic risks (trade wars, Brexit, slowdown in China), resulting in uncertainties and heightened volatility (currency, raw materials, interest rates, etc.). In this context, to which should be added the decline of diesel and new regulations relating to the certification of new vehicles in Europe (WLTP), the automotive market deteriorated in the second half-year, with an expected fall of 3.2%, following an increase of 2.2% in the first half, resulting in a decrease of 0.5% for the full-year.

In this market environment, Plastic Omnium confirms the following financial outlook for 2018 (compared with 2017 IFRS 5 data, i.e. restated for the Environment business):
– growth in economic revenue of at least 5%, i.e. revenue of approximately 8.9 billion euros in proforma figures;
– growth in consolidated revenue of at least 10%;
– 2018 operating result comparable to that of 2017 (615 million euros in 2017);
– a sharp increase in net result group share following scope effects;
– triple-digit free cash-flow.

Press release

Investor Day presentation

To view the replay of the conference

Plastic Omnium and Brose partner on innovative side-door systems

12-12-2018 Expertise

Plastic Omnium and Brose announce the launch of an innovative co-development project on automotive side-doors. Brose, leading family-owned automotive supplier headquartered in Coburg, Germany, is specialized in mechatronic systems for vehicle doors and seats.

The collaboration, involving engineering and design experts from both companies working in a newly established technical and program office in Nuremberg, Germany, consists in jointly developing a new hybrid door systems to anticipate future needs of our customers.
Plastic Omnium provides its technological know-how in body panels, crash and system design for car exterior and BROSE contributes its innovative solutions in the field of mechatronics and door systems.
”Incorporating Plastic Omnium and Brose technologies and know-how, will allow offering new styling, new functions and new vehicle assembly strategies. We thus intend to meet the challenges facing autonomous vehicles and to enhance driver and passenger safety and comfort“ agreed Laurent Burelle, Chairman and CEO of Plastic Omnium and Kurt Sauernheimer, CEO of Brose.

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Shareholders Visit at the International Research & Development Center ∑-Sigmatech in Sainte-Julie (France)

19-11-2018 Shareholders

Plastic Omnium has organized a visit for its individual shareholders, on Thursday, November 15, 2018.

21 shareholders have had the privilege of being guided by a team of engineers from the R&D Center of ∑-Sigmatech to discover the innovation programs developed for our business of intelligent exterior systems. The visit was an opportunity for shareholders to discover our vast expertise in industrial and innovation processes, thanks to various workshops such as injection molding, crash tests, pedestrian shock and weather resistance tests.

Built in 2002, this 16,000 m² center is divided into 3 poles : a pilot line, a laboratory and a benchmark room. ∑-Sigmatech employs more than 450 engineers, of 14 different nationalities and files about 100 patents a year.

Plastic Omnium will continue its communication strategy for its individual shareholders and will organize new site visits in 2019.

CSR: a responsible production

12-11-2018 Act For All

Plastic Omnium’s CSR approach is constantly being improved. Three areas of focus have been identified following a materiality analysis. Focus on the third of these priorities: sustainable production.

Sustainable and responsible production

Plastic Omnium also involves all its plants around the world to minimize its environmental impact, thanks to its “Top Planet” program launched in 2008. The action is divided into 4 axes.

1 – ISO 14001 certification

At the end of 2017, 90% of Plastic Omnium’s industrial facilities were ISO 14001 certified. This environmental management system guarantees the limitation of impacts on the environment and biodiversity. It requires training and education. In 2017, 32,800 hours of environmental awareness and training were provided. The next step is ISO 50001 certification. 24 European sites are already certified and 15 others are aiming for certification by 2020. The goal: to reduce the company’s energy bill and environmental footprint and improve its competitiveness.

2 – Climate

Plastic Omnium continuously monitors the reduction of greenhouse gas emissions from its plants, their energy consumption and incorporates energy performance into their equipment purchases. To reduce the impact of transport, the sites are as close as possible to the manufacturers’ factories. Top Planet Awards are given each year to reward the best performing sites. In 2017, €10 million were invested in the environment and safety.

3 – Waste reduction

71% of material waste is reintroduced into production cycles when 18% is recovered and reused or incinerated to produce energy, representing 89% of the waste. Each year the percentage of final waste decreases, and stands at 11% in 2017.

4 – Air and water quality inside and outside sites

Plastic Omnium maintains good air quality inside and outside its plants. The products used in production are as low-emitting as possible. Water, which comes 97% from the urban network, is used in a closed circuit and does not discharge any effluent.

Plastic Omnium is already committed to the sustainable and responsible production of tomorrow by opening its plant 4.0 in Greer, South Carolina (United States). Its machines, which consume less energy and emit less greenhouse gases, combine performance with environmental responsibility.

To learn more about the responsible production of Plastic Omnium, read the Responsability and Engagement report.

Share capital reduction of 0.87% through the cancellation of treasury stock

08-11-2018 Finance

The Board of Directors of Compagnie Plastic Omnium, in a meeting held on October 30th, 2018, decided to proceed to the cancellation of 1,300,000 treasury shares, representing 0.87% of the share capital of the company.

This operation was completed today.

As a result of this operation, the share capital of Compagnie Plastic Omnium is reduced from 149,866,107 ordinary shares to 148,566,107 ordinary shares with a par value of €0.06, ie. an amount of €8,913,966.42.

The holding company Burelle SA increases its control from 58.00% to 58.51%.

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The Race For Water Odyssey in French Polynesia

07-11-2018 Act For All

The Race For Water Odyssey boat, powered by renewable energies, made a one-month stopover in French Polynesia. It is now heading for Samoa Island. As at each stage, the crew met with the inhabitants to raise their awareness of ocean conservation, plastic waste recycling and energy transition.

The objective of the Race for Water Odyssey mission is to alert and act to prevent plastic waste from reaching watercourses and oceans. Thanks to its local partners, the Race For Water Foundation is developing social and economic models that value plastic waste to encourage people to collect it.

At each stopover, the Race For Water team deploys programs in 3 parts: learn, share & act. These programmes are based on workshops with scientists, companies and associations, but also on meetings with students, public figures and various local actors. The goal is to raise awareness and have an impact on behaviour in the long term.

Race for Water, to preserve oceans and promote energy transition

In addition to its activities, the Race for Water odyssey is an inspirational ambassador for the energy transition. Indeed, the Race For Water boat is powered by solar energy, wind energy and hydrogen, without damaging the environment. During this stopover, nearly 500 students were able to board the boat to discover how it works, realizing that it is possible to travel with clean energy.

Plastic Omnium, technologic sponsor of the Race For Water Odyssey

Official sponsor of the Race for Water odyssey, Plastic Omnium provides the fuel cell and hydrogen tanks. Hydrogen is produced on board using a seawater desalination process. It is then stored in 25 storage systems that can contain up to 200 kg of this gas, which emits no CO². Hydrogen can produce enough electricity to propel the ship for 6 days in autonomy. On land and at sea, this hydrogen technology, which is in the process of being approved, is mature, reliable and sustainable.

To follow the Race For Water Odyssey, visit the expedition’s website.

Credits : Julien Girardot / Race for Water

Plastic Omnium's Innovation and Audacity

05-11-2018 Innovation

The car of tomorrow is designed today. Intelligent Exterior Systems, Clean Energy Systems, complex Modules, all Plastic Omnium’s businesses are reinventing themselves to build the car of tomorrow: cleaner, safer, more connected.

Intelligent Exterior Systems

World leader in Intelligent Exterior Systems, Plastic Omnium is an expert in the integration of complex functions, made possible by the performance of electromagnetic transparency of plastic materials. Embedding detection and connectivity systems in the body parts, lightening materials and stimulating aerodynamics, unlocking automotive design: these are Plastic Omnium’s fields of expertise for the body parts of the future.

Clean Energy Systems

As the world leader in Clean Energy Systems, at the beginning of the multi-propulsion car era, Plastic Omnium’s solutions have a bright future: SCR pollution control, water injection, hybrid vehicle systems, etc. Over time, Plastic Omnium is focusing on electric cars, through a fuel cell powered by hydrogen.

Today, its expertise covers three fields of this propulsion. The tank, with the acquisition of Optimum CPV, specialist in pressurized hydrogen vessels, the fuel cell via the PO-Celltech joint-venture and flow management with the acquisition of Swiss Hydrogen.

Complex Modules

The car of tomorrow, Plastic Omnium designs it in several modules. Front end module, roof modules, hood, rear end, the era of highly customized ready-to-assemble is already here.

Automotive innovation: a key part of Plastic Omnium’s culture

Faced with environmental and societal challenges, the automotive industry is undergoing a major change. To meet these, innovation is key. As part of the PO Way, it brings together the 31,000 collaborators of Plastic Omnium. In 2018, Plastic Omnium launched its first “Innovation Awards”, an internal competition designed to reward the most innovative projects.

To learn more about Plastic Omnium’s innovations, consult the Innovation and Audacity report. on our website

CSR: focus on the attention paid to employees

05-11-2018 Act For All

Plastic Omnium’s CSR approach is constantly being improved. Three areas of focus have been identified following a materiality analysis. Attention paid to employees is the second one.

Attention to employees, a complementary aspect of a dynamic HR policy

To support its growth, Plastic Omnium will recruit 3000 engineers and managers by 2021. The HR policy that the group is implementing enables it to confirm its position as an attractive employer. It is divided into 4 main categories:

1 – Safety: ambition zero accidents

At Plastic Omnium, the safety and health of employees is essential. The commitment, written into the company’s Code of Conduct, is supported by all. The “Top Safety” program, managed by the EHS department, requires sites to be OHSAS 18001 certified and to observe 6 mandatory rules. In August on World Safety Day, an international internal event, employees are trained in safety and good practices.

As a result, in 10 years, there are 10 times fewer accidents. The objective? To achieve an accident frequency rate (TF2) of 1 in 2020.

2 – Equal opportunities: ever more effective

The Equal Opportunities section covers, among other things, disability policy and the feminization of managers. Led by a dedicated organisation and relayed on the sites by HR representatives, the Handicap policy aims to encourage disabled people to remain in employment on sites, to provide them suitable working conditions or to make it possible to welcome new employees with disabilities.

The feminization of managerial positions is also changing, with 184 women managers joining the Group in 2017. They represent 21% of the executive workforce.

3 – Employability: promising external recruitment and internal mobility programs

In 2017, 746 managers and engineers joined the group. Plastic Omnium participated in 80 school relations events and signed nearly 400 work-study, VIE and apprenticeship contracts. More than half of them continued the adventure on a cdd or cdi contract.Internal mobility is encouraged. 75% of management positions were filled internally and 108 employees benefited from international mobility.

3 – Well-being at work: a common consideration on every continent

Teleworking, nursery or caretaker services, sports activities, etc. All over the world, Plastic Omnium seeks to improve working conditions and the well-being of its employees. The measurements, in test, vary from one country to another. This also includes optimizing the ergonomics of a workstation.

To learn more about Plastic Omnium’s CSR approach, consult the document Responsibilities and Commitments and discover the first area of focus: responsible entrepreneurship.

CSR: Focus on Plastic Omnium's responsible entrepreneurship

29-10-2018 Act For All

Plastic Omnium’s CSR approach is constantly improving. Three areas of focus were identified following a materiality analysis carried out involving 18 stakeholders. Focus on the first of them: responsible entrepreneurship.

Responsible entrepreneurship for business ethics and greater competitiveness.

Uncompromising ethics

By signing the United Nations Global Compact in 2003, Plastic Omnium demonstrated its commitment for making ethics one of the pillars of its operations. Since then, the Group has distributed codes of good conduct for all, as well as ethical management codes for buyers and sales representatives. In 2017, nearly 900 employees received training to protect them from fraud, corruption and competition law violations. 52 independent internal audits, scheduled or surprise, were conducted to ensure compliance with these rules.

An ethic shared with its suppliers

4,000 suppliers already signed the supplier charter deployed by Plastic Omnium in 2016. All are committed to respecting the principles of the United Nations Global Compact and to ensuring that their own partners respect them. They are regularly controlled.

An ethics that integrates data

Protecting systems and data is crucial. To detect risky behaviour in real time, Plastic Omnium has recently set up a Cyber Defense Department and a monitoring center in its departments.

Plastic Omnium’s international values

To be a responsible group is also to be a human group and to encourage people to help each other. With its strong roots and values, Plastic Omnium contributes to the promotion of French culture through corporate philanthropy initiatives in France and Europe.

As an innovative automotive equipment supplier, the Group also supports science: universities and other recognized institutions, and revolutionary actions such as the Race for Water odyssey.

In its 26 countries, Plastic Omnium supports local philanthropy to be as useful as possible to economic and social realities. For example, in 2017 during the earthquake in Mexico, Plastic Omnium sites organized to collect basic necessities and donations for the victims.

To learn more about Plastic Omnium’s CSR approach, consult the Responsibilities and Commitments Report.

Revenue at September 30, 2018: €5,858 million, +3.6%

25-10-2018 Finance

Strategic positioning of the Group as an automotive pure player with the acquisition of the world leader of front-end modules, HBPO, and the on-going disposal of the Environment Division.

Revenue¹ growth of 3.6% over the first nine months of the year and 15.7% over the third quarter.

Considering the evolution of market conditions, the Group forecasts for 2018 (and in comparison to 2017 IFRS 5 data):
– a growth in revenue¹ of at least 5% (ie proforma⁴ revenue¹ of around €8.9 billion euros);
– a 2018 operating result comparable to that of 2017;
– a sharp increase in net result group share following scope effects;
– a triple-digit free cash-flow.

Investor Day held on December 13, 2018 at ?-Alphatech (Compiègne, France) to present the Group’s growth and innovation strategy in its new scope of activities.

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To listen to the replay of the conference, click here

Glossary
¹ The economic revenue reflects the Group’s operational and managerial reality. It corresponds to the consolidated sales plus the sales of the Group’s joint ventures at the Group’s percentage stake: BPO (50%) and YFPO (50%) and HBPO for 33.33% until its full consolidation on July 1st, 2018.
⁴ Proforma economic revenue includes 100% of Plastic Omnium Modules’ revenue at January 1st, 2018 and does not include Plastic Omnium Environment’s revenue.

CSR: Plastic Omnium 7th automotive suppliers worldwide and 3rd in Europe

22-10-2018 Act For All

In 2017, non-financial rating agency RobecoSAM put Plastic Omnium in 7th place among automotive suppliers worldwide and 3rd place in Europe with a rating of 65/100, a 10-point increase from 2015. Discover the 10 key dates that have defined Plastic Omnium’s Corporate Social Responsibility.

Plastic Omnium and its CSR

Because industrial activities have an impact on people and the environment, it is essential that an organization such as Plastic Omnium be part of a sustainable development approach. For this reason, and for the past 15 years, the company has taken concrete initiatives to continuously improve itself. The RobecoSAM rating, which places Plastic Omnium in 7th place worldwide among automotive suppliers and 3rd in Europe, reflects the Group’s ongoing efforts.

10 key dates to define Plastic Omnium’s CSR

2001 : ISO 14 001 certification and EHS management
2003 : Engagement in United Nations Global Compact

This commitment is a major milestone in Plastic Omnium’s CSR commitment and guides the company’s actions, such as the internal “code of conduct” or the “Supplier Charter”. Initiated by Kofi Annan in July 2000, it is a voluntary commitment program in which companies are invited to respect ten universally accepted principles relating to human rights, employment standards, environment and the anti-corruption fight. Each year, members must certify the implementation of these principles in a “report on progress”.

2006 : OHSAS 18001 certification
2008 : CO² emissions management ; Chemicals management ; Top Planet program
2009 : Risk management
2012 : Engagement with communities (Focus Hope, Magic Bus projects)
2013 : ISO 50001 certification
2015 : CSR performance assessment by independent third parties
2016 : Supplier CSR Charter
2017 : Signature of French Business Climate Pledge ; Appointment of a CSR Manager ; Performance of a materiality analysis.

Keep growing respecting people and the environment

65/100 or 13/20 is good, especially since RobecoSAM’s overall automotive sector ratings have dropped from 9.8/20 in 2015 to 8.4/20 in 2017. To improve this score and to improve our practices, the effort will continue year after year.

To learn more about Plastic Omnium’s global CSR approach, download the document Responsibilities and Commitments.

Worldmap and ranking of Plastic Omnium

Back to Plastic Omnium at the Paris Motor Show

17-10-2018 Expertise

As an automotive parts manufacturer, Plastic Omnium attended the 2018 Paris Motor Show. These two weeks were marked by official events and visits where Plastic Omnium’s innovations for the clean and connected car of the future seduced. Click on “Read more” to watch the video.

Plastic Omnium’s booth at the Paris Motor Show

A part of the booth was dedicated to Intelligent Exterior Systems and modules, the other to Clean Energy Systems. Plastic Omnium’s three businesses were linked by its concept car of the future – the Living Body. Its intelligent exterior combines lightness, aerodynamics and light signatures to connect with its environment. On the propulsion side, it is equipped with two hydrogen tanks and a fuel cell that converts hydrogen into electricity for a no-CO² emission mobility.

Interactive animations were added to Plastic Omnium models and products, inviting visitors to take quizzes or participate in mini-games. The goal is to understand the way each Plastic Omnium solution works and the advantages of each for the clean and connected mobility of the future. Meetings with clients, associations and public figures followed one another in a cordial atmosphere.

Plastic Omnium at Mondial.Tech

As a sponsor and jury of Mondial.Tech, in the Material & Weight Reduction category, Plastic Omnium has attended the demonstrations of many Startups. The winner in the category is Gazelle Tech, the leading manufacturer of composite peri-urban vehicles. This event offers the opportunity for mobility actors of all sizes to imagine new collaborations.

Talents for future of automobile

At the “MonJob @ FuturAuto” HR event, Plastic Omnium met more than 200 students from French engineering schools in partnership with the SIA (Société des Ingénieurs de l’Automobile) to offer them internships or apprenticeships.

On the same day, Plastic Omnium’s sponsors were present on the Group’s booth alongside the Elles bougent association. Its ambition is to strengthen gender diversity in companies in the industrial and technological sectors and to encourage young girls to pursue careers in engineering.

On the agenda for this day: guided tours by the sponsors on the partners’ stands, and the conference “Women Show: the car, a profession for girls”! “with testimonies from committed women and men. Isabelle Valentin Bianco, Development Director Europe at Plastic Omnium, presented “the evolution of our businesses and the new opportunities offered to women in our sector”.

This day, which was closed by the intervention of Elisabeth Borne, Minister of Transport, brought together 150 high school and university students and 60 female sponsors specializing in automotive and mobility engineering, 16 of whom are from Plastic Omnium.